Case Study-2 Fedra enterprises have started the business in the year 201 and is into manufacturing of door handles. Since they are new in the business they are not maintaining any closing stocks. In the year 201 they produced and sold 1000 door handles. For the coming year ie 202 they are hopeful of getting good number of orders. They expect to produce approximately 10,000 door handles in 202. Fedra Enterprises has consulted you to determine the minimum price that they should quote to their prospectwe customers. You hive been given the following cost data for the year 2001 Some of the additional information is given to you as follows: > 40% of the Works owerhead is directly proportional to the production 70% of the selling expenses fluctuates with sales > Direct Labor charges are expected to reduce by 20% 7. Fixed Works overhead is expected to increase by Rs. 9,000 - Fixed Selling expenses are cxpected to show an increase of 25% - Office overheads are also expected to increase by 25% Prepare the computation for submission to your client